Mr. Madhawendra Kumar Thakur, Chairman, Mithila Vegetable Processing and Marketing Cooperative Union Ltd, Darbhanga, Bihar, elaborates on the vegetable value chain in the region of Mithila.
In Mithila, we have an 8 month cropping season as 3 to 4 months are flooded with water. It is a challenge to cope with the 8 month cropping season. Still the farmers are trying to explore the maximum potential of the vegetables. We are combining the plants of various crop duration and taking benefit of the same. We are also trying to inculcate this into our farmers to reap the maximum benefit out of the value chain. During the flood season, we are fed by nearby states like West Bengal and upper part of Bihar. So during the 8 month period, our farmers grow vegetables. We are lagging behind in infrastructures to preserve the vegetables from harvest to market period. Processing is yet another area where we are behind. But we have come up with vegetable processing units in the near future so that the farmers can produce more. The Primary Vegetable Cooperative Society gathers all the vegetables, and we do the process of cleaning, sorting, and grading, and selling through platforms like Gramin mandi structure in every block. There are 3 such unions and 10 infrastructures in the region which are operational. In Mithila we do not have Gramin mandi type structure available. With this process, the farmers can come to Gramin Mandi, and complete the primary processing of all the vegetables and sell to the local retailer.
There are 5 districts in Mithila vegetable union 73 Blocks/Tehsil. We are fed by the nearby districts or adjacent states such as West Bengal or Siliguri market. In every mandi we have truck loads of vegetables come in the early morning and sell through the mandi network. We plan to create such an infrastructure at ground level in each block/tehsil so that the farmers are getting benefited. We are in the nascent stage to create one in a short span of time. We have just started the process and are doing our best to complete it soon. The data says that every individual needs 400 g of vegetables in their daily meal. We cannot say we feed the entire population on a daily basis. There is a gap of production and demand. So with a product like potato which is hugely demanded, we want to go for an infrastructure so that we can supply potatoes all round the year. In the 5 districts we have only a holding capacity of 20 thousand MT. There are only 4-5 cold storages. In regions where we have cold storages, due to the huge volume of potato production of potatoes, all the storages get filled within 15- 20 days’ time. Other stock has to be sold out at a bare minimum price which is a challenge we face all through the year. In UP, they harvested potatoes in the same period as we did, but they have such a type of value chain they could push their products into our markets. So it becomes a tougher challenge to save our farmers from the price risk. It has hence become essential to create such a type of structure to help our farmers with a leverage to store their produce for a longer period of time and get the benefit of good price. So Mithila region is taking up the lead in that direction after discussion with the stakeholders like Primary Vegetable Cooperative Societies, and we have decided to have a value chain around 20 cold storages established by three years down the line for which we have got approvals initially for three cold storages from the higher authorities. We have started communication with the Department of Horticulture to get the subsidy for the structure. They have announced that if the Primary Vegetable Cooperative Society or Union come to them for help, they can subsidize up to 50% of the project cost which cannot exceed Rs. 10K Per MT. We are planning a structure to store 2500 MT at a cost of Rs. 4.5 crore. We will also be submitting the proposal to the National Cooperative Development Corporation for sanctioning the loan for the same. The Department of Horticulture has started their annual action plan for 2024-25. They asked us to submit the proposal, and we have submitted the same saying we are going to create 3 cold storages this year. If we can have the cold storages with a capacity of 25 thousand MT we will utilize it for maximum benefits.
We should have membership of 200 farmers for every PVCS because for one acre of potato harvesting, we need 1 MT quality seeds to get average production of 10 MT. With 200 farmers with land of 250 acres, the potato cultivation of a single PVCS is 2500 MT. We are planning to adapt varietal changes by using commercial grade potatoes for seed purposes. There is always a huge gap in the selling price of potatoes. In Bihar, a few years back industries set up by Haldiram and a few other national players in the states and they are paying the best price for the farmers in that region. If they can procure potatoes from UP, MP, Gujarat, and other states, we can also grow the advanced and commercial variety to get better prices in the region we are operating from. It may take time but there is a scope to work on the price when it gets to the farmers in the region we are operating in. The challenges are adoption of new varieties, creation of cold storages, and the logistics arrangement round the season. We are in communication with all the stakeholders and connecting the dots through these activities and working on how we can support the farmers.
We are in communication with NCDC for financing to construct cold storages. We are also in talks with a few financial institutions like Samunnati, Uttar Bihar Gramin Bank, State Bank of India and others to have collateral funding possibilities. The farmers will store the produce in the storage, get a receipt from us, and get collateral funds for the goods stored by producing the receipt. They get 75% funds which will help them to proceed with the next season crop cultivation. We are negotiating with the farmers also in this regard, to give their produce in the cold storage, and we are planning to give them a cold storage receipt to get the collateral funding. We are advising them not to go for distress sale, and they will be benefited by collateral funding and a complete ecosystem will be built upon . We will be hand holding the farmers who are engaged with PVCS to complete the handling of cold storage facilities and to get the highest benefit out of our efforts.
When we talk about tomatoes, yet another major vegetable, we see that the tomato processing is not more than 1% in the country unlike other countries like China who do 23%, USA 65%, and Philippines 75%. The Philippines is doing much better in the field of vegetable processing and the complete vegetable value chain. If we do not process the vegetables, the wastage is very high due to their perishable nature. So we have to make use of the storage facility and also go for processing procedures to minimise the wastage and get a better price. After plucking the tomato, if we store it at normal temperature, the produce will be wasted very soon. We are also trying to get tomato processing units. If we can get cold storage or multiple commodity cold storage or tomato processing units, we can add value to the system, and the income of farmers will increase every day.
Another product that needs storage is onion. Onions do not have shelf life like potatoes. We do not have structures to store onions at the cooperative level or ground level. We are going to create a structure of 50 MT each in different regions of Mithila Veg Union specially for the onions. If we see the scenario in the Nasik, the price of onion is Rs. 13 to 14 per kg, but we are trying to talk to the shopkeepers for Rs. 25 to 30 a kg. There is a huge gap in each season onion is produced in Nasik regions. When we create such structures in the PVCS, we target an infrastructure of 50 MT onion holding capacity. During the harvest season, we can procure from that region, store it well in our place, and sell throughout the season. So we can have business throughout the year through the PVCS network with the different producing zones associated with producing. So for preserving these 3 basic commodities we are planning to develop structures to save the farmers from losses. In every cold storage, we are creating high chambers cold storage, out of which 3 are of different temperatures. So vegetables like carrots can be procured from Karnataka, Andhra Pradesh, and other states and stored. If we follow the proper process, it can be stored to be used in off season to get better prices with such types of trading activities. Similarly, we do not grow capsicum, it can be procured from other surplus states using the Cooperative society network, FPO network, and other channels.
Thus the demand and supply problem can be mitigated in the 5 districts in Mithila region. For every individual vegetable, we need different strategies of supply chain at the ground level. We are taking care of these strategies so that we can benefit. The PVCS is planning 200 members initially, but after a few months or financial year, they target more members. If the number of PVCS increases the required volume of business will be high. For every PVCS, we are planning to create a proposition so that we can leverage the demand and supply gap activity in this ecosystem.
What is actually a vegetable value chain?
Vegetable value chain means from the time of sowing of seeds till it reaches the end user. From Seed to Plate is the concept. From getting seed, post-harvest management value chain is how much they are traveling. We are procuring the seeds, ploughing the field, sowing the seeds, growth of plants, fruiting, plucking of fruits, and the other activities to have the fresh produce delivered to the end user. This is a complete value chain.
How do you help farmers? Do you procure their produce and sell them? How does it work?
At ground level we have a structure, PVCS. The members of the society are growing the vegetables, and we are connecting the dots from post-harvest to end user of the vegetables. It means that whatever produce they have, we are just helping them to get the maximum price benefit out of the produce by selling it to the government channels, mandis, or the processing units so that the wastage can be minimised, and the farmers can get a better price through this network. So the union is doing the marketing and processing part, and Primary Vegetable cooperative Society is doing the production part. That is the scenario we are creating through this project.
What type of vegetables and fruits can be grown in the Mithila region based on the climatic conditions? Do you sell them outside the Mithila region also?
We grow all sorts of green vegetables except a few like capsicum. Otherwise all the green vegetables are grown here. The volume is limited, but we are growing all vegetables. We grow fruits like mango, which is one of the best varieties, guava, litchi, etc. Yes, we do sell outside too. Recently Mithila Veg Union also got export licenses for exporting the vegetable to different countries.
What is the climate of Mithila region?
On an average, we get approx 1100 mm of rain every year with a temperature maximum of 35 to 45 degrees and minimum temperature of 9 to 11 degree Celsius.
What does your cooperative union do with vegetables?
We are the aggregator of complete vegetable production done by PVCS. We are hand holding them, training them to cater to the needs of the market, and fulfil the wishes of the farmers. We are connecting the links between end users and the producers.
Please let us know your career background and how you got interested in the agriculture field.
It was in 2003 that I started my agriculture journey. I got my B. Sc (Agri) from Allahabad Agriculture Institute. I got selected as JRF and went to National Dairy Research Institute- Karnal for masters. I returned to Delhi after completing my masters in NDRI in Karnal. I came to Delhi in 2010 and started working on two assignments. I worked in the Development sector for almost 7 years and came into freelancing mode. In 2017, I returned to Bihar, started a few projects with the department of horticulture. Then I came to know about the cooperative structure and engaged with them and Mithila Vegetable Processing and Marketing Cooperative Union. That is the brief story of my career.
Mr Madhawendra Kumar Thakur
Email: ktmadhaw@gmail.com
Phone: 09304183829
In Mithila, we have an 8 month cropping season as 3 to 4 months are flooded with water. It is a challenge to cope with the 8 month cropping season. Still the farmers are trying to explore the maximum potential of the vegetables. We are combining the plants of various crop duration and taking benefit of the same. We are also trying to inculcate this into our farmers to reap the maximum benefit out of the value chain. During the flood season, we are fed by nearby states like West Bengal and upper part of Bihar. So during the 8 month period, our farmers grow vegetables. We are lagging behind in infrastructures to preserve the vegetables from harvest to market period. Processing is yet another area where we are behind. But we have come up with vegetable processing units in the near future so that the farmers can produce more. The Primary Vegetable Cooperative Society gathers all the vegetables, and we do the process of cleaning, sorting, and grading, and selling through platforms like Gramin mandi structure in every block. There are 3 such unions and 10 infrastructures in the region which are operational. In Mithila we do not have Gramin mandi type structure available. With this process, the farmers can come to Gramin Mandi, and complete the primary processing of all the vegetables and sell to the local retailer.
There are 5 districts in Mithila vegetable union 73 Blocks/Tehsil. We are fed by the nearby districts or adjacent states such as West Bengal or Siliguri market. In every mandi we have truck loads of vegetables come in the early morning and sell through the mandi network. We plan to create such an infrastructure at ground level in each block/tehsil so that the farmers are getting benefited. We are in the nascent stage to create one in a short span of time. We have just started the process and are doing our best to complete it soon. The data says that every individual needs 400 g of vegetables in their daily meal. We cannot say we feed the entire population on a daily basis. There is a gap of production and demand. So with a product like potato which is hugely demanded, we want to go for an infrastructure so that we can supply potatoes all round the year. In the 5 districts we have only a holding capacity of 20 thousand MT. There are only 4-5 cold storages. In regions where we have cold storages, due to the huge volume of potato production of potatoes, all the storages get filled within 15- 20 days’ time. Other stock has to be sold out at a bare minimum price which is a challenge we face all through the year. In UP, they harvested potatoes in the same period as we did, but they have such a type of value chain they could push their products into our markets. So it becomes a tougher challenge to save our farmers from the price risk. It has hence become essential to create such a type of structure to help our farmers with a leverage to store their produce for a longer period of time and get the benefit of good price. So Mithila region is taking up the lead in that direction after discussion with the stakeholders like Primary Vegetable Cooperative Societies, and we have decided to have a value chain around 20 cold storages established by three years down the line for which we have got approvals initially for three cold storages from the higher authorities. We have started communication with the Department of Horticulture to get the subsidy for the structure. They have announced that if the Primary Vegetable Cooperative Society or Union come to them for help, they can subsidize up to 50% of the project cost which cannot exceed Rs. 10K Per MT. We are planning a structure to store 2500 MT at a cost of Rs. 4.5 crore. We will also be submitting the proposal to the National Cooperative Development Corporation for sanctioning the loan for the same. The Department of Horticulture has started their annual action plan for 2024-25. They asked us to submit the proposal, and we have submitted the same saying we are going to create 3 cold storages this year. If we can have the cold storages with a capacity of 25 thousand MT we will utilize it for maximum benefits.
We should have membership of 200 farmers for every PVCS because for one acre of potato harvesting, we need 1 MT quality seeds to get average production of 10 MT. With 200 farmers with land of 250 acres, the potato cultivation of a single PVCS is 2500 MT. We are planning to adapt varietal changes by using commercial grade potatoes for seed purposes. There is always a huge gap in the selling price of potatoes. In Bihar, a few years back industries set up by Haldiram and a few other national players in the states and they are paying the best price for the farmers in that region. If they can procure potatoes from UP, MP, Gujarat, and other states, we can also grow the advanced and commercial variety to get better prices in the region we are operating from. It may take time but there is a scope to work on the price when it gets to the farmers in the region we are operating in. The challenges are adoption of new varieties, creation of cold storages, and the logistics arrangement round the season. We are in communication with all the stakeholders and connecting the dots through these activities and working on how we can support the farmers.
We are in communication with NCDC for financing to construct cold storages. We are also in talks with a few financial institutions like Samunnati, Uttar Bihar Gramin Bank, State Bank of India and others to have collateral funding possibilities. The farmers will store the produce in the storage, get a receipt from us, and get collateral funds for the goods stored by producing the receipt. They get 75% funds which will help them to proceed with the next season crop cultivation. We are negotiating with the farmers also in this regard, to give their produce in the cold storage, and we are planning to give them a cold storage receipt to get the collateral funding. We are advising them not to go for distress sale, and they will be benefited by collateral funding and a complete ecosystem will be built upon . We will be hand holding the farmers who are engaged with PVCS to complete the handling of cold storage facilities and to get the highest benefit out of our efforts.
When we talk about tomatoes, yet another major vegetable, we see that the tomato processing is not more than 1% in the country unlike other countries like China who do 23%, USA 65%, and Philippines 75%. The Philippines is doing much better in the field of vegetable processing and the complete vegetable value chain. If we do not process the vegetables, the wastage is very high due to their perishable nature. So we have to make use of the storage facility and also go for processing procedures to minimise the wastage and get a better price. After plucking the tomato, if we store it at normal temperature, the produce will be wasted very soon. We are also trying to get tomato processing units. If we can get cold storage or multiple commodity cold storage or tomato processing units, we can add value to the system, and the income of farmers will increase every day.
Another product that needs storage is onion. Onions do not have shelf life like potatoes. We do not have structures to store onions at the cooperative level or ground level. We are going to create a structure of 50 MT each in different regions of Mithila Veg Union specially for the onions. If we see the scenario in the Nasik, the price of onion is Rs. 13 to 14 per kg, but we are trying to talk to the shopkeepers for Rs. 25 to 30 a kg. There is a huge gap in each season onion is produced in Nasik regions. When we create such structures in the PVCS, we target an infrastructure of 50 MT onion holding capacity. During the harvest season, we can procure from that region, store it well in our place, and sell throughout the season. So we can have business throughout the year through the PVCS network with the different producing zones associated with producing. So for preserving these 3 basic commodities we are planning to develop structures to save the farmers from losses. In every cold storage, we are creating high chambers cold storage, out of which 3 are of different temperatures. So vegetables like carrots can be procured from Karnataka, Andhra Pradesh, and other states and stored. If we follow the proper process, it can be stored to be used in off season to get better prices with such types of trading activities. Similarly, we do not grow capsicum, it can be procured from other surplus states using the Cooperative society network, FPO network, and other channels.
Thus the demand and supply problem can be mitigated in the 5 districts in Mithila region. For every individual vegetable, we need different strategies of supply chain at the ground level. We are taking care of these strategies so that we can benefit. The PVCS is planning 200 members initially, but after a few months or financial year, they target more members. If the number of PVCS increases the required volume of business will be high. For every PVCS, we are planning to create a proposition so that we can leverage the demand and supply gap activity in this ecosystem.
What is actually a vegetable value chain?
Vegetable value chain means from the time of sowing of seeds till it reaches the end user. From Seed to Plate is the concept. From getting seed, post-harvest management value chain is how much they are traveling. We are procuring the seeds, ploughing the field, sowing the seeds, growth of plants, fruiting, plucking of fruits, and the other activities to have the fresh produce delivered to the end user. This is a complete value chain.
How do you help farmers? Do you procure their produce and sell them? How does it work?
At ground level we have a structure, PVCS. The members of the society are growing the vegetables, and we are connecting the dots from post-harvest to end user of the vegetables. It means that whatever produce they have, we are just helping them to get the maximum price benefit out of the produce by selling it to the government channels, mandis, or the processing units so that the wastage can be minimised, and the farmers can get a better price through this network. So the union is doing the marketing and processing part, and Primary Vegetable cooperative Society is doing the production part. That is the scenario we are creating through this project.
What type of vegetables and fruits can be grown in the Mithila region based on the climatic conditions? Do you sell them outside the Mithila region also?
We grow all sorts of green vegetables except a few like capsicum. Otherwise all the green vegetables are grown here. The volume is limited, but we are growing all vegetables. We grow fruits like mango, which is one of the best varieties, guava, litchi, etc. Yes, we do sell outside too. Recently Mithila Veg Union also got export licenses for exporting the vegetable to different countries.
What is the climate of Mithila region?
On an average, we get approx 1100 mm of rain every year with a temperature maximum of 35 to 45 degrees and minimum temperature of 9 to 11 degree Celsius.
What does your cooperative union do with vegetables?
We are the aggregator of complete vegetable production done by PVCS. We are hand holding them, training them to cater to the needs of the market, and fulfil the wishes of the farmers. We are connecting the links between end users and the producers.
Please let us know your career background and how you got interested in the agriculture field.
It was in 2003 that I started my agriculture journey. I got my B. Sc (Agri) from Allahabad Agriculture Institute. I got selected as JRF and went to National Dairy Research Institute- Karnal for masters. I returned to Delhi after completing my masters in NDRI in Karnal. I came to Delhi in 2010 and started working on two assignments. I worked in the Development sector for almost 7 years and came into freelancing mode. In 2017, I returned to Bihar, started a few projects with the department of horticulture. Then I came to know about the cooperative structure and engaged with them and Mithila Vegetable Processing and Marketing Cooperative Union. That is the brief story of my career.
Mr Madhawendra Kumar Thakur
Email: ktmadhaw@gmail.com
Phone: 09304183829